by Chelsea Springli 
Teaching children how to save from a young age could help set them up for life. When you are a kid you think money grows on trees, or at least your parents have an endless supply. However, the reality is quite a stark difference. Starting a savings account for your children can help them build great life habits and prepare them for the real world. While a savings account is a great start, it won’t be useful if they don’t know how to best use it. Here are four tips to help you guide your kids down the right path of savings.
Teach the Importance of Saving Money
Explain to them the importance of saving money and having a savings account. Kids savings accounts can help teach your children the value of saving money while watching it grow and enjoy the rewards from saving for a goal. Explain to them that saving money will help you have enough money when you want to purchase something. Plus, showing them how keeping money in an account allows the credit union to pay them for having money in an account.
You can help this lesson stick by involving your kids in a simple saving journey of your own. Next time you have a little extra money on hand, show how you have the money that you’ll use to shop at the store. Take your kids with you so they can see that you’re saving some of the money instead of spending it all. What should you do with the remaining cash? Take it to the credit union.
Make a Credit Union Trip
Open a kids account and make going to the credit union fun. Make it a big event, play it up huge, and tell them today we are going to the credit union to open you your very own savings account. Make it a fun trip to the credit union and let them learn about all the perks they get. Alltru’s CUbby Youth Savings account even offers an incentive for saving their money and there are no fees attached to it.
When your kids come across cash in the future, remind them that you can go back to the credit union so their money will grow even more. Teaching kids requires repetition, so you may need to bring them along for several visits before they realize that they can deposit their money without a reminder.
Set a Savings Goal
Setting a savings goal should be balanced by allowing them to spend a little so they reap the reward. The joy of seeing your bank account grow as a child only last for so long. Make sure you allow them to spend a little while they are saving so they see the reward from doing both. One way to balance this is to allow your kid to spend $2 for every $10 they save. Calculate your home’s rule for all your kids based on their interests and savings account balances.
This is a great opportunity to explain and teach them how they can also make not only just deposits, but also withdraws at the credit union. It’s key that your kid knows that credit unions don’t just take your money. They also give you money as well.
Lead By Example
This is the last and most important step in teaching your kids about saving money, opening an account, going to the credit union and spending money. Take the time to explain to them their bank statements, what it means to have an account with interest, how to deposit and withdraw money at the credit union, and then having enough money to spend it when you need to.
When you lead by example, you create an environment where your kid feels safe to ask questions. I remember leaving the credit union with my mom as a kid asking so many questions.
“Why did they take your money?”
“Why are we going to the credit union and giving them money before going shopping?”
“What happens if you run out of money?”
These questions may be intimidating, but clear and age-appropriate answers will encourage healthy money habits instead of avoiding the topic.
Teaching kids how to save money may seem like a tough task. But using these tips, you can make your child’s understanding of money fun and accessible. It’s an investment in knowledge which truly pays the best interest.
